A temporary ban on issuing any new permits for vacation home rentals in South Lake Tahoe was averted Tuesday after the City Council heard from more than a dozen people who said such a moratorium would be detrimental.

The council also opted not to place a cap on the number of vacation home rentals in the city, where 1,325 homes had vacation-rental permits as of June 11. That number makes up about 9 percent of the city's housing stock, officials said. A vacation-home rental is defined as a home rented for periods of one to 30 days.

The council instead voted to fine-tune its vacation-rental ordinance, modifying some definitions, adding a section that appears elsewhere in city code on animalproof trash containers and including a provision for permit parking in problem areas.

And at a future meeting, the council will take a look at a three-strikes rule for vacation-home rentals, meaning homeowners would lose their vacation-rental permit after three violations of the city's ordinance. The ordinance now allows five violations within a year before a permit is revoked.

The council also will consider increasing fines for violators; and hiring a community service officer whose job would be to enforce the vacation-rental rules. Permit fees likely would increase to cover the cost of the new officer's salary and benefits, estimated at $65,000 to $70,000, along with other costs such as transportation.

The council's actions came in response to residents' concerns about the vacation-home rentals, with the main issues being noise, parking and trash left out improperly.

But most of those who addressed the council Tuesday said a moratorium or cap is unnecessary and would hurt the economy.

"The major effect felt will be in tourist dollars," said Chris Chandler, a property manager with Coldwell Banker McKinney & Associates Realtors.

The rentals not only bring money to the city from permit fees and transient occupancy tax (TOT), but also from vacationers who shop at grocery stores, patronize local restaurants and casinos, and take part in outdoor activities, Chandler said.

And caring for and managing the vacation homes create jobs for residents, some noted.

On the other side of the debate, resident Ed Mosur, who spoke in favor of a moratorium or cap, said vacation rentals may hurt the economy by driving families out of town, causing schools to suffer. Mosur was one of only three speakers who criticized vacation rentals during the council's morning and afternoon sessions; 15 others spoke in support of them.

The number of recorded complaints about vacation rentals is down - from 49 in fiscal year 2003-04 to 22 in 2006-07. Some have said that number is misleading: Many residents may not complain because they have become resigned to the situation or they don't want to bother police.

Sharon Kerrigan of the South Tahoe Association of Realtors said educating residents on the process for resolving conflicts, along with better enforcement of vacation-rental rules, would be a better approach than a cap or moratorium.

Councilman Jerry Birdwell, who earlier this month asked that the council look at a temporary ban on new permits as a possible option, said at the start of Tuesday's discussion that after further consideration, he did not feel a moratorium was needed. He noted there had been "very little increase" in the number of vacation-rental permits.

Councilman Ted Long repeated his view that better enforcement of existing rules is needed rather than an overhaul of the vacation-rental program. And the problems residents are reporting aren't solely from vacation rentals, he said.

"I don't want to see vacation rentals as the whipping boy in this thing," Long said. "It's not vacation rentals; it's citywide."

The council voted 4-0 on the ordinance changes, which will come back for final council approval at a future meeting. The council also voted 4-0 to evaluate at a future meeting the proposed three-strikes rule, increased fines and hiring of a community service officer.

Mayor Mike Weber abstained from the votes, saying he wanted a more thorough evaluation of how enforcement could be increased before committing to a new community service officer position and its ongoing costs.